Several weeks ago I asked if Oracle might try to acquire Hewlett-Packard, and I speculated that Oracle could hire Mark Hurd, the ousted CEO of HP, for the job of integrating the company.
At least one half of that scenario has occurred with Oracle saying late Monday that Mark Hurd has replaced Charles Phillips as co-president of Oracle.
Is the stage now set for Oracle to mount a bid for HP?
- HP remains leaderless and that makes it vulnerable to be acquired.
- HP would provide Oracle with enormous and highly profitable consolidation opportunities with its Sun Microsystems acquisition.
- An Oracle/Sun/HP plus the 45 plus other acquisitions over the past 10 years, would make a company capable of competing against all of IBM. It would create a West coast versus East coast tech rivalry that would span the globe.
(Chart is from Stephen Jannise at Software Advice.)
However, an acquisition of HP by Oracle would be terrible for HP staff and for Silicon Valley's already high unemployment rate. Tens of thousands of people would lose their jobs (especially all the anti-Hurdists at HP).
HP has a market value of about $93 billion compared with about $95.3 billion in the wake of Mr. Hurd's departure. Oracle stands at $121 billion, a $5 billion increase over the same period. The market has shown that a leaderless HP is worth less, and it has boosted Oracle considerably.
Yes, it is a big pill to swallow however, it would enable Larry Ellison, CEO and co-founder of Oracle to perform an end run in the massive global IT market and also leave a substantial legacy on his upcoming retirement.
If there is one thing we know about Larry Ellison is that he is motivated by big goals. Is this one too large for him?
That's for him to decide.
Larry Dignan: Can Oracle, Hurd topple HP, IBM without services? | ZDNet
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